A consortium consisting of management members, RMB, Pan-African Private Equity Fund and the Oppenheimer family’s Stockdale Street private equity vehicle, have acquired JoJo Tanks, South Africa’s leading manufacturer of roto-moulded polyethylene tanks used for rainwater harvesting and general liquid storage.
The deal was unveiled in an announcement issued by RMB private equity outfits, RMB Ventures and RMB Corvest yesterday. Puchase price was not disclosed.
The business was purchased from an Investec Principal Investments-led consortium, as part of a sale process undertaken by Investec late last year.
“JoJo is definitively a market leading enterprise, active in a high-growth niche and led by an exceptional management team, always an attractive combination,” said RMB Ventures’ Amina Pahad. “
“Growth drivers have migrated from purely agricultural applications to much broader domestic use, driven by ongoing constrained bulk water reticulation, specifically in more rural areas. The fact is that 6 of South Africa’s 14 million-odd households do not have access to in-home water reticulation and would benefit significantly from residential rainwater harvesting.”
Regional climatic and infrastructural constraint realities, as well as increasing environmental awareness, are also behind a new wave of demand in metropolitan areas, while government, municipal and NGO service delivery objectives continue to drive even greater rural demand.
“We see JoJo Tanks as one of the key enablers of South Africa’s challenge to preserve water, a limited resource of which greater harvesting and storage is paramount,” says Dr Zuko Kubukeli of Pan-African Private Equity Fund 1.
“The Pan-African team has a very personal understanding of the rural environment, as well as the metropolitan migration dynamic underway, both key to JoJo’s continued success in enabling the national preservation imperative.”
“Jojo is a great business, led by a top-quality management team and is well-positioned to address some of the water challenges faced by our country and to provide basic water storage solutions to those who need it most,” says Paul Salomon of the Oppenheimer family’s Stockdale Street private equity vehicle.
According to Jojo Tanks CEO, Rod Cairns, the deal will enable the business to continue its growth trajectory while, at the same time, making a real difference to people whose lives are adversely impacted by the growing lack of water security.